The Chinese Cash and Stock Dividend Puzzles: Evidence from Joint Earnings and Dividend Announcements
36 Pages Posted: 25 Aug 2012 Last revised: 14 Nov 2012
Date Written: August 1, 2012
Chinese companies report year-end earnings and dividends simultaneously, so when the two sets of news are in conflict, the relative importance of earnings versus dividends can be disentangled. Chinese dividend announcements take precedence over earnings news, as revealed by Cumulative Absolute Returns for two-way earnings and dividend news sorts of the data, with investors reacting most favourably to stock dividend announcements, the least informative form of dividend.
Keywords: stock dividend, Chinese stock dividend puzzle, Chinese cash dividend puzzle
JEL Classification: O16
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